DoD Awards $20.9M for Sight Units with Container to General Dynamics, Facing Limited Competition
Contract Overview
Contract Amount: $20,977,440 ($21.0M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2022-08-10
End Date: 2025-08-13
Contract Duration: 1,099 days
Daily Burn Rate: $19.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NSN: 1240-01-532-3942 COMMODITY NAME: SIGHT UNIT WITH CONTAINER
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $21.0 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: NSN: 1240-01-532-3942 COMMODITY NAME: SIGHT UNIT WITH CONTAINER Key points: 1. Spending on sight units with containers totals $20.9 million. 2. General Dynamics Land Systems Inc. is the sole awardee. 3. The contract carries a risk of limited competition. 4. The sector is Defense Logistics Agency, specifically Optical Instrument and Lens Manufacturing.
Value Assessment
Rating: fair
The award of $20.9 million for sight units with containers appears to be a significant expenditure. Benchmarking against similar contracts is difficult without more data on the specific components and quantities, but the price seems substantial for specialized optical equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under full and open competition, but the data indicates only one awardee, suggesting limited actual competition for this specific delivery order. This could potentially impact price discovery and lead to less favorable pricing for the government.
Taxpayer Impact: Taxpayer funds are being used for this procurement. The impact is neutral to negative depending on whether the price achieved reflects true market value given the limited competition.
Public Impact
Military readiness may be enhanced with the acquisition of new sight units. The procurement supports a major defense contractor, potentially impacting jobs and the defense industrial base. Taxpayers are funding advanced optical technology for military applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may result in higher costs.
- Sole awardee raises questions about market availability or contractor capabilities.
- Long contract duration (1099 days) could expose the government to price fluctuations.
Positive Signals
- Procurement addresses a specific military need for sight units.
- Firm Fixed Price contract provides cost certainty for the government.
Sector Analysis
This contract falls within the Optical Instrument and Lens Manufacturing sector, a specialized area within defense logistics. Spending benchmarks for such niche items are highly variable, but $20.9 million represents a notable investment in advanced optics.
Small Business Impact
The data indicates the awardee is General Dynamics Land Systems Inc., a large corporation. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award, suggesting limited direct impact on the small business sector.
Oversight & Accountability
The Defense Logistics Agency is responsible for this procurement. Oversight would involve ensuring the delivered sight units meet specifications and that the pricing is justified, especially given the limited competition. Accountability rests with the contracting officers to manage the contract effectively.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for price inflation due to limited competition.
- Lack of transparency regarding specific unit capabilities and performance.
- Dependence on a single contractor for critical equipment.
- Long-term cost implications (maintenance, upgrades) are unclear.
Tags
optical-instrument-and-lens-manufacturin, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.0 million to GENERAL DYNAMICS LAND SYSTEMS INC.. NSN: 1240-01-532-3942 COMMODITY NAME: SIGHT UNIT WITH CONTAINER
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS LAND SYSTEMS INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $21.0 million.
What is the period of performance?
Start: 2022-08-10. End: 2025-08-13.
What specific capabilities do these sight units provide, and how do they compare to commercially available alternatives?
The specific capabilities of these military-grade sight units are likely tailored for demanding operational environments, potentially including enhanced durability, specific reticle patterns, or integration with other military systems. A detailed comparison to commercial alternatives would require access to technical specifications and performance data, which are often classified or proprietary for defense procurements. However, military-grade optics typically command a premium due to stringent testing and specialized features.
Given the limited competition, what steps were taken to ensure a fair and reasonable price was negotiated?
To ensure a fair and reasonable price with limited competition, the contracting agency likely relied on techniques such as historical price analysis, comparison to similar government contracts, or potentially obtaining independent government cost estimates. They may have also engaged in detailed price analysis of the contractor's proposed costs, scrutinizing labor, materials, and overhead. If possible, they might have solicited information from other potential sources to gauge market interest and pricing.
What is the expected operational lifespan and maintenance cost of these sight units to assess long-term value?
The expected operational lifespan and maintenance costs of these sight units are critical for a comprehensive value assessment but are not detailed in the provided data. Military-grade optics are generally designed for durability, but their lifespan is heavily influenced by usage intensity, environmental conditions, and maintenance protocols. Understanding these factors is essential for calculating the total cost of ownership and determining the long-term value proposition beyond the initial acquisition cost.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 38500 MOUND RD, STERLING HEIGHTS, MI, 48310
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,977,440
Exercised Options: $20,977,440
Current Obligation: $20,977,440
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $321,725
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRDL122D0050
IDV Type: IDC
Timeline
Start Date: 2022-08-10
Current End Date: 2025-08-13
Potential End Date: 2025-08-13 12:08:00
Last Modified: 2025-05-29
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